London — UK department-store owner Debenhams warned that earnings this year will be less than analysts had forecast, after a weak holiday period in which post-Christmas sales fell flat and the company cut prices. The stock plunged as much as 24%. Pretax profit probably will be £55m to £65m in the year ending August 31 if current volatile, competitive business conditions persist, the London-based company said Thursday in a statement. Analysts expect £82m, the average of 16 estimates compiled by Bloomberg. Comparable sales in the 17 weeks up to December 30 fell 1.3%, Debenhams said. The company increased markdowns to try to spur sales, and identified an additional £10m in cost savings beyond previous guidance. "The market has been challenging and particularly promotional in some of our key seasonal categories and we have responded so as to remain competitive for our customers, which has impacted our profit performance," CEO Sergio Bucher said in the statement. Debenhams shares plunged...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.